Student Debt

Current student debt: 42909 USD

Yes, I live in a country where university is free. Yes, considering my student debt this number is a bit frightening. Tuition is free, but you have to cover housing, food, transportation etc. meanwhile the government offers wonderful student loans to a very, very reasonable interest rate. 

Interest rate

At this point I could have paid off my debt a while back instead of investing that money. However, the interest rate for all government funded student loans is currently at 0,34%. This means that it is actually better to keep your earned money and invest in the stock-market instead to pay the interest rate of by the dividends; while paying the minimum amount back to the government.

student debt and get Financial Independence!

Every cent of our debt is currently invested in a high-yielding index fund, regenerating its value over and over. If you are interested in our approach; check out my blog postThe Leprechaun that will never die.

This is one of the reasons I love comparing financial strategies across countries. In other countries it would have been daunting to just leave this debt be while having enough funds to pay it off, whereas here, it is definitely better to keep this debt invested for as long as I can. Check out the comparison of the different student debts between US and the rest of the World; CollegeCosts. I am staying in debt and moving our money around in a few quite branch specific index funds, and I am also happily paying in the 0,34% along with the circa 100 bucks a month I am required to pay back.

What is it like where you are from?

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